Manufacturing Industry Is Facing Severe Financial Problems - Manufacturing - Machine Tool Industry

Dilemma facing China's manufacturing industry

. Many people think that this is market failure symptoms, must hand to support the government. This is a confused cause and effect conclusions, on the contrary, precisely because our market is not in place, are also affected by global economic tsunami, caused many manufacturing companies now in trouble.

Private manufacturing enterprises in the upstream resource in the field can not expand without adequate funds for industrial upgrading, there is no sufficient domestic consumption, can only attach to low-end manufacturing, rely on the export tax rebate living. Once the European consumption has fallen, there will be more than 30% overcapacity.

For small and medium enterprises in China have reached a consensus on the importance of the parties, but the financing of SMEs are bound. Private enterprises such as commercial bank loans of small, short-term. As China's private enterprises in Jiangsu and Zhejiang's economic development by the leading provinces of Jiangsu Province in 1999 bank loans to private individuals accounted for all levels of exposure of the economy and 4.8% growth in 2000 but also 5.2%. Slightly higher proportion of Zhejiang Commercial Bank, was 8.2%, to participate in bank and Cooperation The 20 blue-chip private enterprises, the loans have been only three, only seven million yuan loan. There is no fundamental improvement in the current situation, private enterprises can only rely on their own funds, far can not meet the development requirements of enterprises, another term of the loan can not meet the needs of enterprises, almost no private enterprise to open a bank construction loan program, which private enterprise economy is only access to working capital loans within a year, can not meet the long-term cash flow needs. China has more than 100 cities have established a system of SME credit guarantee institutions and venture capital system, to the year 2000, the national security agencies to private enterprises can only provide 500 billion in guarantees to support small and medium enterprises obtain financing through guarantee agencies only drop in the bucket. For most businesses, direct financing through capital markets is also an ambitious, more than 1,500 listed companies in China are state-holding enterprises, more than 80% of direct financing flows to the state-owned holding enterprises.

Wenzhou funds had been the country to denounce coal burnt in speculation, we should ask is, why the real estate speculators speculation private capital in Wenzhou, China's manufacturing capital surplus of the right, resulting in physical capital to finance private capital? Not the case, from the global financial crisis, the storm of view Wenzhou, Wenzhou entities funded enterprises, industrial upgrading is not enough, however, these funds do not want to enter the low profitability of the industry. When seeking to break through when the private capital of Zhejiang, is facing the industry access to the ceiling. Private capital out of China belongs to sunrise industries of railway construction, because the only reference stock and unforeseen dividend rights, not management and say; when Wenzhou funds into the Shanxi coal industry, was attacked and into Waterloo defeat, and now small mine was nationalized, as compensation, a number of private funds to be converted into shares, the right to enjoy the dividends, these entrepreneurs becoming an investor. In the iron and steel, petroleum, and real estate industry has been true.

Blaming the banks, large companies are useless condemnation, each commercial bank wants to get low-cost, low risk of double-low deposit and loan poor, every large company wants to reap excessive profits. The point is, should be allowed to market development suitable for SMEs on credit, allowing the formation of private capital into the market in all industry average profit. For example, slightly higher than bank loan interest rate cap floating in the micro-credit companies; for example, to allow private capital into all sectors, building of infrastructure projects in the shares, depending on the amount of funds and corresponding management rights, then China's capital allocation will be more efficient, whether state-owned enterprises or private enterprises, even for China's future economy, all meritorious. Suffered in the global financial crisis special moment, we should be emphasized that market, not vice versa.

Moderate decline in the Chinese economy, the National Logistics Information Center, the latest Chinese manufacturing purchasing managers index (PMI) shows that our PMI index fell month to month, two months at one time 7-8 down to 50% below the current rise slightly in September , October has turned down, back to within 50% for the last three years are rare. Live more difficult for SMEs, led by state-controlled fertilizer, steel and other industries an unusual loss of the entire industry, demanded that the government policy support, government support can be a short time, to adjust the economic structure of China, the market allocation of resources the highest priority.

by: gaga

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